Head to Head Review: CF Bankshares (NASDAQ:CFBK) & First of Long Island (NASDAQ:FLIC)

CF Bankshares (NASDAQ:CFBK) and First of Long Island (NASDAQ:FLIC) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, earnings, dividends, analyst recommendations, institutional ownership, risk and valuation.

Earnings and Valuation

This table compares CF Bankshares and First of Long Island’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CF Bankshares	$112.31 million	0.83	$16.94 million	$2.61	7.04
First of Long Island	$161.82 million	1.46	$26.24 million	$1.17	8.97

First of Long Island has higher revenue and earnings than CF Bankshares. CF Bankshares is trading at a lower price-to-earnings ratio than First of Long Island, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares CF Bankshares and First of Long Island’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CF Bankshares	15.08%	11.34%	0.85%
First of Long Island	16.22%	7.13%	0.62%

Analyst Recommendations

This is a breakdown of current ratings and price targets for CF Bankshares and First of Long Island, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CF Bankshares	0	0	0	0	N/A
First of Long Island	0	0	0	0	N/A

Insider and Institutional Ownership

41.1% of CF Bankshares shares are owned by institutional investors. Comparatively, 48.3% of First of Long Island shares are owned by institutional investors. 18.6% of CF Bankshares shares are owned by insiders. Comparatively, 6.3% of First of Long Island shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

CF Bankshares pays an annual dividend of $0.24 per share and has a dividend yield of 1.3%. First of Long Island pays an annual dividend of $0.84 per share and has a dividend yield of 8.0%. CF Bankshares pays out 9.2% of its earnings in the form of a dividend. First of Long Island pays out 71.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. CF Bankshares has raised its dividend for 3 consecutive years.

Risk & Volatility

CF Bankshares has a beta of 0.51, suggesting that its stock price is 49% less volatile than the S&P 500. Comparatively, First of Long Island has a beta of 0.64, suggesting that its stock price is 36% less volatile than the S&P 500.

Summary

First of Long Island beats CF Bankshares on 8 of the 14 factors compared between the two stocks.

About CF Bankshares

CF Bankshares Inc. operates as the bank holding company for CFBank, National Association that provides various banking products and services in the United States. The company accepts savings, retail and business checking accounts, and money market accounts, as well as certificates of deposit. It offers single-family mortgage loans; commercial real estate and multi-family residential mortgage loans; commercial loans and equipment leases; residential real estate loans and treasury management depository services; retail banking services and products. In addition, the company offers consumer loans, such as home equity lines of credit, home improvement loans, and loans secured by deposits and purchased loans, as well as other loans. Further, it provides online internet banking, mobile banking, and remote deposits. The company was formerly known as Central Federal Corporation and changed its name to CF Bankshares Inc. in July 2020. CF Bankshares Inc. was founded in 1892 and is based in Columbus, Ohio.

About First of Long Island

The First of Long Island Corporation operates as the holding company for The First National Bank of Long Island that provides financial services to small and medium-sized businesses, professionals, consumers, municipalities, and other organizations. The company offers business and small business checking, personal checking, negotiable order of withdrawal, interest on lawyer, escrow service, rent security, personal and nonpersonal money market, savings, time deposit, and individual retirement accounts. It also provides commercial and residential mortgage, commercial and industrial, small business credit scored, Small Business Administration, construction and land development, consumer, and home equity lines/loans, as well as standby letters of credit; debit or credit cards; and overdraft facilities. In addition, the company offers life insurance, investment management, trust, estate and custody, retail investment, bill payment, lockbox, ACH, safe deposit box rental, wire transfer, money order, checkbook printing, check, ATM, and online and mobile banking services. The First of Long Island Corporation was founded in 1927 and is headquartered in Melville, New York.